November 26, 2013

United Arab Emirates to commence grain silos operation at Fujairah

Within the coming months, the United Arab Emirates (UAE) will start operating new grain silos at Fujairah and has picked a private company to manage them, the managing director of Abu Dhabi's Food Security Centre said.

The silos located at the port of Fujairah, which lies outside the Strait of Hormuz, will have the capacity to store up to 275,000 tonnes of grain enough for a strategic supply of around six months.

The Strait of Hormuz is a vital Gulf oil export and food import route. In 2012, Iran threatened to block the strait if it came under attack as tensions rose with the West last year over Tehran's disputed nuclear programme.

The UAE, which imports over 90% of its food needs, sees Fujairah's strategic location outside the strait as vital for ensuring the security of its food supplies.

The project will bring its total grain storage capacity to around 850,000 tonnes. The silos, in addition to holding a strategic reserve, will also be used to store grain for re-export.